Editor’s note: This story has been updated with Musk’s latest comments.
Tesla, Inc. TSLA CEO Elon Musk on Wednesday slammed California Public Employees' Retirement System (CalPERS) for their decision to vote against his rescinded 2018 pay package ahead of the upcoming shareholder meeting.
What Happened: "CalPERS broke the deal. Shame on them, they have no honor," Musk wrote. The CEO was responding to an X user who noted that the largest public pension fund in the U.S. reaped significant profits since 2018 for their Tesla shares. The fund owns about 9.5 million shares of Tesla, making them among the top 30 investors of the company, as per Reuters.
CalPERS CEO Marcie Frost announced the fund's decision to vote against Musk's pay package in an interview with CNBC on Wednesday. While the fund voted in favor of the package in 2018, it won't be doing so this time, Frost said. However, Frost denied that CalPERS was duped back then.
"What she’s saying makes no sense, as all the contractual milestones were met. CalPERS is breaking their word," Musk responded to the interview.
See Also: SpaceX CEO Elon Musk Says Gigantic Starship To Get Even Taller With 3x More Thrust Than Saturn V
Why It Matters: Musk's 2018 pay package was worth $56 billion at the time of award. It was overturned by a Delaware court earlier this year, calling it an "unfathomable sum." Tesla's board is attempting to reinstate it through a shareholder vote in June.
Morgan Stanley analyst Adam Jonas, in a note earlier this month, said that the upcoming vote will drive material volatility in the stock and determine the company’s long-term strategic direction.
Meanwhile, the Delaware judge, who earlier voided Musk's pay package, assured that Tesla would not contest the ruling in any other jurisdiction.
Price Action: Tesla shares closed down 0.3% at $176.19 on Wednesday. The stock is down 29% year-to-date, according to data from Benzinga Pro.
Read Next: Glass Lewis Tells Shareholders To Vote Against Elon Musk’s Proposed $56 Billion Compensation Package
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This story was generated using Benzinga Neuro and edited by Pooja Rajkumari
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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